Veto sets back local film plans

Published 9:10 pm, Thursday, November 14, 2013

Albany

Gov. Andrew Cuomo's veto of a bill to extend the state's Empire State Film Production Tax Credit program to upstate could put a dent in Schenectady's proposal to reinvent a former industrial site along the Mohawk River into a film studio.

The governor would not authorize the legislation sponsored by Sen. Hugh Farley, R-Niskayuna, and Assemblyman Angelo Santabarbara, D-Rotterdam, because he thought it would dilute the program, aimed at stimulating film production in New York.

The program is weighted toward benefiting downstate studios, although the Buffalo region gets a piece of the tax credit pie as well. Cuomo said the expansion proposed by the Legislature should be part of the next budget negotiation.

The bill would have extended the program into 14 additional counties, including Albany, Saratoga, Schenectady and Rensselaer.

The Capital Region's Regional Economic Development Council recently proposed a $15 million subsidy to help a California-based developer create a $68 million studio at the former American Locomotive plant site in Schenectady.

The tax credit doesn't take effect until 2015, and plans for the studio were already under way before the tax credit expansion measure was passed earlier this year. But the additional tax credit opportunity made the studio plan even more attractive for developers, said Peter Edman, an aide to Farley.

In a statement, Farley said he was "extremely disappointed that Gov. Cuomo vetoed legislation I sponsored to expand the state's film tax credit to the Capital Region and Hudson Valley," said Farley. "All parts of the state should be treated fairly and equally when it comes to offering this credit. We're talking about economically distressed areas that could really benefit from the jobs and economic activity that would be generated from film production. I hope this veto is only a temporary setback."

Santabarbara said the veto takes away any advantage Schenectady offered. He said he intends to begin pushing the issue once the legislative session starts in January.

The veto was pushed by downstate studios who particularly didn't like Westchester and Rockland counties being added to the mix, according to people involved in the legislation.

The veto stands in contrast to other upstate development efforts by the Cuomo administration, including the push for resort casino development and the creation of the START-UP NY program to create tax-free zones around public universities and other sites.